Correlation Between GRUPUL INDUSTRIAL and Atelierele CFR
Can any of the company-specific risk be diversified away by investing in both GRUPUL INDUSTRIAL and Atelierele CFR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GRUPUL INDUSTRIAL and Atelierele CFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRUPUL INDUSTRIAL ELECTROCONTACT and Atelierele CFR Grivita, you can compare the effects of market volatilities on GRUPUL INDUSTRIAL and Atelierele CFR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GRUPUL INDUSTRIAL with a short position of Atelierele CFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPUL INDUSTRIAL and Atelierele CFR.
Diversification Opportunities for GRUPUL INDUSTRIAL and Atelierele CFR
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GRUPUL and Atelierele is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GRUPUL INDUSTRIAL ELECTROCONTA and Atelierele CFR Grivita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atelierele CFR Grivita and GRUPUL INDUSTRIAL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GRUPUL INDUSTRIAL ELECTROCONTACT are associated (or correlated) with Atelierele CFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atelierele CFR Grivita has no effect on the direction of GRUPUL INDUSTRIAL i.e., GRUPUL INDUSTRIAL and Atelierele CFR go up and down completely randomly.
Pair Corralation between GRUPUL INDUSTRIAL and Atelierele CFR
Assuming the 90 days trading horizon GRUPUL INDUSTRIAL ELECTROCONTACT is expected to under-perform the Atelierele CFR. In addition to that, GRUPUL INDUSTRIAL is 1.07 times more volatile than Atelierele CFR Grivita. It trades about -0.03 of its total potential returns per unit of risk. Atelierele CFR Grivita is currently generating about 0.0 per unit of volatility. If you would invest 5,300 in Atelierele CFR Grivita on August 29, 2024 and sell it today you would lose (150.00) from holding Atelierele CFR Grivita or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPUL INDUSTRIAL ELECTROCONTA vs. Atelierele CFR Grivita
Performance |
| Timeline |
| GRUPUL INDUSTRIAL |
| Atelierele CFR Grivita |
GRUPUL INDUSTRIAL and Atelierele CFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPUL INDUSTRIAL and Atelierele CFR
The main advantage of trading using opposite GRUPUL INDUSTRIAL and Atelierele CFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPUL INDUSTRIAL position performs unexpectedly, Atelierele CFR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Atelierele CFR will offset losses from the drop in Atelierele CFR's long position.| GRUPUL INDUSTRIAL vs. Turism Felix B | GRUPUL INDUSTRIAL vs. TRANSILVANIA LEASING SI | GRUPUL INDUSTRIAL vs. Norofert SA | GRUPUL INDUSTRIAL vs. Biofarm Bucure |
| Atelierele CFR vs. Teraplast Bist | Atelierele CFR vs. Electroarges S | Atelierele CFR vs. Comvex SA | Atelierele CFR vs. IAR SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |